Authority of the Governing Body (Mayor-Ald.)

Reference Number: MTAS-1635
Tennessee Code Annotated
Reviewed Date: August 21, 2018
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Under the 1983 Purchasing Law, a municipality has the power to set its own purchasing procedures. The city's governing body may lower the $2,500 minimum required for competitive bidding and public advertisement or raise the requirement to a maximum of $10,000. [1]

The city's governing body may also raise the $1,000 competitive quote threshold up to 40% of the competitive bidding and public advertisement limit.

The municipality also may exempt perishable goods bought in the open market from competitive bidding and public advertisement. But remember, there are certain reporting requirements if this exemption is made.


[1] Cities with populations of not less than 40,000 nor more than 42,500 or populations over 150,000, according to the 2000 federal census or any subsequent census may increase the minimum dollar amount required for public advertisement and competitive bidding to $25,000, provided that purchases between $10,000 and $25,000 are based upon three competitive bids (quotes).

 

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